Good insights, where my thoughts may have been misdirected, this quote and article certainly carries a lot of weight, to better appreciate imports and the effect on the market.
I would like to hear comments on our abilities to offer more of a mix of product, at high specification, better quality, and quicker delivery. I still understand the US steel industry to be number 1.
With regard to STLD, I understand has good client relations, and can whip foreign competition. As hard as some may find it to believe, customers do not always buy on only first glance price, but on a combination of factors which can better make value decisions..
I am surprised to hear that STLD is losing so much business from Asis. Is this what is the truth?
This would be entertaining if it was a chat room. Let's remember what we're doing, or ought to be doing here. A lot of us have serious money riding on this company. The Business Week article was very insightful. There are many intangibles. Look at Chrysler and the auto industry in the early '80's. Who'd a thunk,aye? Cheap imports are THE problem, but I wouldn't be on this board if I knew another steel company better equipped to take on foreign imports.This is an ongoing fight in the very early rounds. I hope everyone here gets rich quick but I don't think so. Keep this forum open, factual and informative, and let's lose the B.S.
I agree, there are folks with serious money riding on this company. Bought in at 16 1/2, stopped out at 17 1/2 during the recent asian dip and am back in again with additional shares at 17 3/4. I believe I'm in for the long haul from here on out, pending reasonably consistant news and earnings.
Buyers that need higher quality (Auto for example) will not buy the imports, Service centers and spot market users will. This will drive prices down ... it did two years ago also. There is a lot of hot band capacity here now, and the mini's still can't produce TOP TOP quality without struggling. I know STLD says they are going after the Auto market, but I know thier surface quality is not there ... not yet, and they don't have QS-9000 either.
Over the last few years, the ticket for Hot Band producers has been to add value. Cold Mill and Galvanize products still demand a nice premium, and companies that can produce these products build a on-site customer for a large portion of the hot band they produce.
This spring should tell the story ... when the Great lakes thaw the imports will show up in STLD's backyard. By then, STLD will probably have sold most of thier Q2 capacity, so they should be ok until Q3. If the prices are going to drop further, it will be in the June, July, August time frame.